The S&P 500 erased earlier losses to trade positive for the day, as commodity related firms get a boost from a declining dollar and housing related stocks lead the rally.
The S&P 500 Index gained 3.69 points for the day, or 0.35 percent, to trade at 1,069.88. The Dow Jones Industrial Average is flat at 10,011.63. The Nasdaq Composite is up 9.94 points, or 0.46 percent, to trade at 2,151.06 at 11:50 am.
Home builders are among the biggest gainers. Pulte Homes (NYSE:PHM) is up 4.14 percent, Lennar (NYSE:LEN.B) is up 7.52 percent, and Toll Brothers (NYSE:TOL) is up 2.73 percent.
Home improvement retailers are also lifting up the stock market. Home Depot (NYSE:HD) is up 3.15 percent and Lowe’s (NYSE:LOW) is up 2.32 percent.
As the dollar fell this morning, commodity stocks benefited. Metals stocks are the best performers in the sector.
Freeport-McMoran (NYSE:FCX) is up 1.94 percent and Teck Resources (NYSE:TCK), a Canadian metals company, gained 5.52 percent.
Trader sentiments turn more positive after the first 30 minutes of the U.S. morning session.
The Chicago Board Options Exchange Volatility Index (VIX), an indication of expected volatility of the S&P 500 index, dropped from 27.1 at 9:52 am to 25.60 around 11:40 am.
Since 10:30 am, the dollar has lost as much as 37 pips against the euro, after trading flat for most of the morning. The euro, however, has declined against the Swiss franc and the pound sterling since the opening of U.K stock market.
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